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AidAidThe good, the The good, the bad and the bad and the indifferentindifferent

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What is meant by Aid?What is meant by Aid?

Aid is the transfer of money, goods and expertise to help the development of LEDCs and improve the quality of life in these countries.

Think of some examples…

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SourcesSources

Aid can come from two main sources:

1) Governments

2) Non-governmental organisations (NGOs)

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Government aidGovernment aid

Developing countries receive aid from governments and official public agencies, such as the World Bank or International Monetary Fund (IMF). Aid is given in the form of grants or low interest loans, to be used for long-term development purposes or to alleviate emergency situations.Some long-term aid is ‘conditional’, which means the recipient government has to make specified economic reforms, or agree to buy goods and services from the donor country, for example.

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Bilateral AidBilateral Aid

Bilateral means "two sides". This type of aid is from one country to another. An example would be Britain giving money and sending experts to help build a dam in Turkey. Quite often bilateral aid is also tied Aid. So it includes grants, loans and technical assistance.

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Multilateral AidMultilateral Aid

Multilateral means "many sides". Here organisations that involve many countries, give help. This aid is run by groups such as the World Health Organisation (WHO) and United Nations Educational, Scientific and Cultural Organisation (UNESCO) - both of which are part of the United Nations (UN).

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Emergency AidEmergency Aid

Most aid is long term developmental aid. However after a natural disaster such as an earthquake or flood, help is needed straight away. This help includes food, clean water, shelter, medicines and the staff to organise these materials. Such items are not useful for long term aid as local farmers and business people would not be able to compete with the free handouts and so the local economy would be damaged.

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The United nations suggests …The United nations suggests …

… that all developed countries should give 0.7% of their GDP (what is GDP?) in AidThe UK managed 0.31% in 2000 (tho’ we have improved a bit since)The most generous country was Norway in 2000 (and is still in 2006 – last figures available) who gave 0.92%Look who is down the bottom!

2006 figures

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Problems with aid schemesProblems with aid schemes

International aid schemes have caused problems, and have been criticised by some people because:

They may involve the building of an expensive, prestigious building such as a hospital - which will mainly help the urban rich It will involve technology which is inappropriate - a tractor is not much use if there are not spare parts or diesel fuel available locally …Large scale projects such as dams may damage the environment and force people off the land Some projects have suffered from corruption - the help has not gone to the people who need it but politicians and officials have greatly benefited

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Problems with aid itselfProblems with aid itself

Despite Africa being the largest recipient of aid, over $1 trillion in 50 years, its growth in GDP has been negative for a large part of the time

•Why did this happen?

•Most of the money, instead of being used to improve conditions, was used on here and now issues.

•Some countries built big government organisations to run these schemes – which has often led to corruption and the rich government employees keeping the money for themselves.

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They also say ‘Look at Asia’They also say ‘Look at Asia’

It is sound economic policies, not aid, that in the last decades have lifted millions - even billions - of Asians out of extreme poverty, and provided the resources to limit the extent of (or in some countries, eradicate) starvation, diseases, and other visible signs of poverty. Inversely, it is bad economic policies that still keep millions of Africans in deadly poverty. When several Asian countries started to open up for trade and foreign direct investment, the policies that created the 'Asian Tigers' and the 'Asian Miracles', many African countries headed for a model of economic autarky, closed the borders, and regulated the domestic economy to absurd degrees.

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So some people So some people say …say …

STOP ALL AIDSTOP ALL AIDBut others say it is But others say it is

possible to give aid and possible to give aid and make it work!make it work!

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Non-governmental OrganisationsNon-governmental Organisations

Remember! Also known as NGOsThese are charitable organisations such as Oxfam, the Red Cross, Save the Children…

Any others?

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DonationsDonations

They rely on donations and fund-raising events to pay for projects in poorer countries.It is sometimes called VOLUNTARY AID because the money is given by individuals.Projects tend to be on a smaller scale but have more of a direct effect on the lives of the local people in LEDCs.They are much more likely to offer local controlThis means they use ideas that work well in that place rather than having a generalised plan – one size DOES NOT fit all.

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It is this kind of aid that It is this kind of aid that the opponents of the opponents of ‘‘STOP ALL AIDSTOP ALL AID’ ’

say worksay workAid works, when it is practical, targeted, science-based and measurable. For example immunisation campaigns for children in impoverished countries, against diseases such as polio, diphtheria, and measles. These have saved the lives of millions of children. To make these successes sustainable, however, the aid must be supplemented by practical and targeted help in other areas like schooling, safe drinking water, and especially agriculture.

Polio immunisation

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What does this graph show?What does this graph show?

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Schemes that workSchemes that work

Using an Australian designed and manufactured solar powered pump, water from a bore close to the village is pumped through pipes to a storage tank in the village and carried by other pipes to several water points in the village. No problems with power and they get clean water!

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MicrocreditMicrocredit

In Bangladesh, with support, SATU provided microcredit to 294 women members. Of the 294 members, 267 members paid their loans in advance of the due date and requested second loans. As a result, a total of 561 microcredits or $25,264 was in circulation in this grant period. Income generation activities included:

52 microcredit loans given for vegetable cultivation104 microcredit loans to develop for small businesses – grocery shops, vegetable sales, tea stalls, bamboo basket selling, firewood sales86 microcredit loans for handicrafts – bamboo and cane work, pottery, mat confection67 microcredit loans for poultry-rearing103 microcredit loans to purchase rickshaw or rickshaw vans49 microcredit loans for sewing and tailoring businesses

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Fair TradeFair Trade

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History of Fair TradeHistory of Fair Trade

1946: “Self Help Crafts” began buying needlework from Puerto Rico. Simultaneously SERRV International began to

trade with poor communities in the South.

1950: In Europe Fair Trade dates back to the 1950s when Oxfam UK started selling crafts made by Chinese refugees in Oxfam shops.

1958: The first formal "Fair Trade" shop which sold these and

other items opened in 1958 in the USA . Parallel activities were taking place in the Netherlands.

1996: Fair Trade in Malta

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What does Fair Trade offer?What does Fair Trade offer?Gives payment of a fair priceInvolves producer groups in decision making Protects the rights of children and womenEnsures the health and safety of workersPreserves and promotes traditional arts and craftsPromotes Education Creates opportunities for economically disadvantaged producersInvolves transparency and accountabilityEncourages better environmental practices

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Non-Fair Trade Coco-Fibre Non-Fair Trade Coco-Fibre TwiningTwining

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Health Hazardous Working Environment

Health Hazardous Working Environment

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Dangerous Work

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No gender Equality

Non-existent involvement in Decision Making

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No work guaranteed after 4 weeks

Unfair payment for their hard work

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Poor Housing Conditions for the Factory Workers

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Unfair distribution of income

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Women are given

entrepreneurship

opportunities

Fair Trade Coco-Fibre Twining by Fair Trade Coco-Fibre Twining by Siyath FoundationSiyath Foundation

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Healthy and safe working environment

No Dangerous Tools

Tools given by Siyath Foundation

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Acceptable Housing

Conditions

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Help for the community

Promoting Education

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AREAS OF FOCUSACTIVITY FRAMEWORK

Care and security

Livelihood strategies

Psychosocial support and Social Recognition

Bringing up of children

Construction of houses

Sanitary and drinking water facilitiesTraining on advocacy and lobbing

Material support for schooling Health Issues and Nutrition

Caring for children while at workExtra activities and facilities for childrenCareer guidance

Partnerships and active memberships of community groups

Leadership opportunity

Skills/ Entrepreneurial training

Skills/ Entrepreneurial trainingRaw Material

Information and Communication - ITBuilding up of Revolving funds Micro Credit

Marketing

Business counsellingTrade Networking

House hold equipment and utilities

Machinery and equipment for income generation

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HomeworkHomework

Find a Fair trade that interests youOn 3 slides:Slide 1: Who (person or organisation)? Where (country)? What (are they producing)? – maybe a map and pictureSlides 2: a bit more detail about what they do – no more than 6 pointsSlide 3: who gains and how? Again no more than 5 or 6 points

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ExampleExampleWho? Women Women Where ?Galle area of Sri LankaGalle area of Sri LankaWhat do they do?Fair Trade Coco-Fiber Fair Trade Coco-Fiber TwiningTwining

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What has changed?What has changed?

Before they used to work in very poor, dangerous conditions for big companies with little securityNow the women work for themselvesThey have safe conditionsThey sell their own products through the Siyath FoundationThey earn better money

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What else has changed?What else has changed?

They have better housingThey have received training to run a businessTheir children are looked after when they are at workTheir children go to school, and are helped to find jobs when they leaveThey control their own lives